Timesheet rounding and the 7-minute rule

Rounding punch times is legal — but only if it is genuinely neutral. Here is the rule, the tables, and how to tell whether yours is costing you money.

Last reviewed August 2026 · TimeWorked · General information, not legal or tax advice

General information, not legal advice. Rounding is an active area of litigation and state rules diverge from the federal position. Check current law for your state before relying on any of this.

What rounding is

Rounding means paying you for a tidied-up version of your punches rather than the exact minute. A shift clocked at 8:57 to 17:04 might be paid as 9:00 to 17:00. It exists because payroll systems and paper timesheets were historically built around quarter hours, and it has survived into systems that no longer need it.

Federal law permits it. 29 CFR § 785.48(b) allows an employer to round to the nearest 5 minutes, tenth of an hour (6 minutes) or quarter hour (15 minutes) — provided the practice "will not result, over a period of time, in failure to compensate the employees properly for all the time they have actually worked."

That proviso is the whole rule. Rounding has to be neutral: it must cut both ways and roughly balance out. A policy that only ever rounds against the employee is unlawful even if each individual adjustment is small.

The 7-minute rule

With quarter-hour rounding, the midpoint of each 15-minute block is 7½ minutes, which produces the familiar table:

Minutes pastResultMinutes pastResult
0 minrounds down (unpaid) → :008 minrounds up (paid) → :15
1 minrounds down (unpaid) → :009 minrounds up (paid) → :15
2 minrounds down (unpaid) → :0010 minrounds up (paid) → :15
3 minrounds down (unpaid) → :0011 minrounds up (paid) → :15
4 minrounds down (unpaid) → :0012 minrounds up (paid) → :15
5 minrounds down (unpaid) → :0013 minrounds up (paid) → :15
6 minrounds down (unpaid) → :0014 minrounds up (paid) → :15
7 minrounds down (unpaid) → :00

Measured from the quarter-hour markers, 1 to 7 minutes past a marker rounds back to it, and 8 to 14 minutes past rounds forward to the next one. Clock in at 8:52 and you are paid from 8:45; clock in at 8:53 and you are paid from 9:00.

The rule is often misquoted as "you can be up to 7 minutes late without losing pay." That is backwards. Being 7 minutes late means your time rounds down to the previous quarter, so those minutes are unpaid — but you are also not docked a full quarter hour. The employee benefit runs the other way: arriving 8 minutes early gets you paid from the earlier quarter.

The three common increments

IncrementBreak pointMax swing per punchTypical user
5 minutes2½ minutes±2.5 minRetail, hospitality
6 minutes (0.1 h)3 minutes±3 minProfessional services, legal billing
15 minutes (0.25 h)7½ minutes±7.5 minManufacturing, traditional payroll

With two punches a day and quarter-hour rounding, a worst-case day swings 15 minutes. Across 250 working days that is more than 62 hours — which is why neutrality matters so much more than the size of any single adjustment.

When rounding stops being lawful

The practical trend is clear: as timekeeping systems record to the second, the historical justification for rounding — administrative convenience — disappears, and with it the legal cover.

Working out whether rounding is costing you

  1. Write down your actual punch times for a full pay period, to the minute.
  2. Enter them in the timesheet calculator with rounding set to exact minutes and note the total.
  3. Change the rounding setting to match your employer's rule and compare.
  4. Repeat across several pay periods. A single period proves nothing — neutrality is judged over time.
  5. If the exact figure is consistently higher, you have something concrete to raise, and the numbers to raise it with.

The time card calculator does the same for a single day if you only want to check one shift.

If you set the policy

Frequently asked questions

Is the 7-minute rule legal?

Yes under federal law. 29 CFR 785.48(b) permits rounding to the nearest quarter hour provided it is neutral and does not, over time, fail to compensate employees for all time worked. Some states now restrict it further.

Can my employer round my time down every day?

No. Rounding must work in both directions. A policy that consistently rounds against the employee fails the neutrality requirement even if each adjustment is only a few minutes.

How much time can rounding cost me?

With quarter-hour rounding the worst case is 7½ minutes per punch, so 15 minutes a day. Over a working year that is more than 62 hours — but a lawful, neutral policy should return roughly as much as it takes.

What is rounding to the nearest tenth of an hour?

Rounding to 6-minute blocks, so every result lands on 0.1 of an hour. The break point is 3 minutes: 1–3 minutes round down, 4–6 round up.

Is rounding still allowed in California?

It is under increasing pressure. The Court of Appeal in Camp v. Home Depot held that where an employer's system captures the exact minutes worked, the employer must pay for all of that time; the California Supreme Court granted review. Many California employers have stopped rounding as a result.

Can an employer round the weekly total instead of each punch?

That is far harder to defend. The regulation contemplates rounding of clock-in and clock-out times, not of accumulated totals, and rounding a weekly figure tends to produce larger one-sided adjustments.

Does rounding apply to unpaid breaks?

Rounding cannot be used to extend an unpaid break beyond its actual length, and time spent working through a break is payable regardless of what the punches say.

Sources

Keep reading

Weekly timesheet

A full week with breaks, overtime, saving and export.

Time card

One day, clocked in and out up to three times.

The regular rate of pay

Why overtime is rarely just 1.5× your hourly wage.

Overtime laws by state

Federal rules plus the states that add daily or lower thresholds.

Minutes → decimal

The 0–59 minute payroll conversion chart.